BrightView price target raised to $12.90 from $11.30 at Goldman Sachs

Goldman Sachs raised the firm’s price target on BrightView (BV) to $12.90 from $11.30 but keeps a Sell rating on the shares. The company reported mixed Q4 results, with modest revenue upside offset by a miss on earnings relative to the firm’s estimates and consensus and guidance for FY25 that came below the Street, the analyst tells investors in a research note. BrightView’s landscape maintenance business continues to experience revenue declines as the company faces the impact of the wind-down of its BES aggregator subcontractor business and divestiture of USL, Goldman added. The firm also notes that the recovery in core landscape maintenance revenue growth will require investments into staffing and customer service, dampening EBITDA margins that currently come below pre-COVID levels, and given these dynamics, Goldman warns that it will be difficult for BrightView to deliver attractive revenue growth and EBITDA margins simultaneously.